CIMA BA3 exam : Fundamentals of Financial Accounting

BA3 Exam Simulator
  • Exam Code: BA3
  • Exam Name: Fundamentals of Financial Accounting
  • Updated: May 31, 2026
  • Q & A: 395 Questions and Answers

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CIMA Fundamentals of Financial Accounting Sample Questions:

1. The concept of stewardship refers to which ONE of the following?

A) An accountant's responsibility to make sure all financial information is correct
B) An accountant's responsibility to remain optimistic in the presenting financial information
C) An accountant's responsibility to properly look after and present financial information
D) An accountant's responsibility to properly advise management on financial information


2. A non-current asset was purchased for £240000 at the beginning of Year 1, with an expected life of 7 years and a residual value of £50000. It was depreciated by 20% per annum using the reducing balance method.
At the beginning of Year 4 it was sold for £100000. The result of this was:

A) A loss on disposal of £22880
B) A profit on disposal of £58571
C) A profit on disposal of £50000
D) A loss on disposal of £2720


3. MNO operates an imprest system to maintain a float of petty cash of 5100 At the end of the week the petty cash expense vouchers total $76 and there is $36 cash in the float. Which of the following, taken independently, would explain this difference of $10?

A) $10 expense has been paid for which there is a missing expense voucher
B) A $20 bill has been counted as a $10 bill in the float
C) A $10 receipt from an employee has not been added to the float
D) The total of the expense vouchers has been overstated by $10


4. Which of the following are likely examples of accrued expenses:

A) Sales tax
B) Water bill
C) Interest on loans
D) Purchase order
E) Electricity bill


5. Which of the following transactions would be classified as a capital transaction?

A) Payment of dividends
B) Repayment of bank loan
C) Expenditure on heat and light
D) Depreciation on plant and machinery


Solutions:

Question # 1
Answer: C
Question # 2
Answer: A
Question # 3
Answer: D
Question # 4
Answer: B,C,E
Question # 5
Answer: B

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